Lawyers should be turned into corporate governance gatekeepers. Put them in charge of the company's Stock Exchange filings. They would have to certify that all the statements were true and correct and they would have to sign a statement saying they weren’t aware of hidden booby traps in the accounts.
The tough rules of Sarbanes-Oxley are hitting attorneys. Suddenly lawyers are going down like nine pins because of the crackdown on backdating. The number of attorneys in trouble is unprecedented.
Lawyers say a corporate counsel is in the best position to help the company build an ethical culture. But that won’t always work. Just ask the people at Herwlett-Packard.
As expected, Fannie Mae has turned into litigation city with the regulators now suing the mortgage giant's former leaders over their role in the multibillion dollar accounting scandal at the government-sponsored company. And while Fannie Mae is suing its former auditors KPMG for getting its numbers wrong, KPMG is now counter-suing.
